What is Gross Margin per Unit?
Profit margin on each unit sold.
How to calculate it
Calculate Gross Margin per Unit as: (Price − Variable cost) / Price × 100. Pull the inputs from your connected data and track the trend over time in your dashboard.
Examples
Example 1
Price $100, variable cost $30 -> 70% unit gross margin.
Example 2
A product priced at $100 with $30 of variable cost -> 70% unit gross margin, leaving $70 per sale to cover fixed costs and profit.
Why it matters
Gross margin per unit is the profit margin on each unit sold and is the foundation of pricing and contribution analysis. It shows how much each sale contributes before fixed costs and is essential for understanding scalability. Omitting variable selling costs overstates the true per-unit margin.
Benchmark context
Higher margins support faster, more profitable scaling; benchmark against your category, since structurally different cost bases vary widely.
Common pitfalls
Omitting variable selling costs.
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